Diffraction enhanced imaging (DEI) is a novel approach to X-ray imaging that has the potential to revolutionize X-ray medical imaging, because of its greater contrast at lower delivered X-ray doses than conventional radiography. DEI relies on measuring tiny angular deflections of a collimated X-ray beam as it passes through the object (patient) in acquiring the images. The capability of DEI to detect low-density features in low-density matrices will make it especially useful in medical diagnoses and research. DEI is currently limited to synchrotron radiation facilities, but the potential impact of this technology in medical imaging research, and subsequently in clinical use, will far exceed the current or projected capacity of available synchrotron beamlines. We propose to develop DEI Laboratory Research Machine for medical imaging research. Its successful development, with acceptable image acquisition times, contrast and resolution would provide the knowledge base necessary for subsequent commercialization - a key to DEI's wider use and development of the imaging technology itself - along with the development of appropriate imaging protocols and methods. This project would thus provide the requisite "springboard technology" for the stepwise development of research instrumentation, clinical diagnosis instrumentation, and possibly clinical screening instrumentation. The specific aims of the Phase I is to develop and demonstrate: 1) Shortening the image acquisition time by using a higher power, higher energy X-ray source; 2) Implementing a sample scanning system to increase field of view; 3) Improving the mechanical stability of the system together with reducing the time for aligning the optical system. Assuming favorable results from phase I, the aims of the Phase II project will be the implementation of: a high-power (60 KW) X-ray source; of a more efficient detector; of a user-friendly GUI; of predictive modeling for simple systems, and of a means of relative image quality quantification.